According to United Automobile Workers Vice President Terry Dittes, a tentative agreement between General Motors (NYSE: GM) and striking auto workers has been reached and may potentially end the month-long strike.
In a public release, Dittes addressed members of the union, stating, "We just reached a tentative agreement with GM a short time ago....We will go over the details when the council meets tomorrow morning in Detroit."
The announcement comes in the aftermath of last week's abruptly canceled meeting and an impromptu meeting between GM CEO Mary Barra, Dittes, and UAW President Gary Jones just a day later.
Details on the actual agreement have not yet been released by either GM or the UAW and will likely become available in the coming days. Before the deal can be finalized, however, it must be ratified both by UAW leadership and by union members. While UAW leadership appears to be pleased with the tentative agreement, it is entirely possible that the auto-workers union leadership represents may choose to reject the proposal. A rejection is not wholly out of the question; in 2015, striking UAW members working for Fiat-Chrysler (NYSE: FCAU) rejected a tentative deal struck between UAW and Fiat-Chrystler leadership.
While the deal has yet to be finalized, the confidence of GM's investors seems to be up as the company's stock price rose by 2% during trading on Wednesday. The recovery bodes well for GM and its investors, though GM's stocks are still down by at least 5% and have remained low since the strike began in September.
Overall, the month-long strike has not boded well for GM, which, as reported by CNN, has been losing in upwards of $90 million per day as the strike continues. Should union members accept the tentative deal and the strike end within the week, GM will have lost approximately $1.5 billion in revenue. However, if union members reject the agreement, losses will likely continue to intensify as GM's stock of already manufactured vehicles continues to dwindle.